Well the actual trigger has been the release of the new Producer norms for recycling. What that has done is forced big ticket Electronic and Electrical companies to make sure they procure back a percentage of all the items they sold and sell it to established recyclers in the organised sector. So far in the absence of these rules, Eco Recycling was not seeing much growth in business as they were competing against unorganised ‘kabbadiwalas’ – Now the corporates will deal only with compliance recyclers like Eco Recycing who will be assured of a large quantity of quality scrap which they in turn will sell. This is the big change leading to almost 300% increase in valuations in the past year alone. Whether this is justified time will tell – I don’t think the management has been the most ethical one in the past and there is not much of a management team, so all depends upon execution and transparency
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